Construction Permits Fell by a yearly 9.43% in 2015

Construction activity showed further contraction in 2015 as revealed by the number of permits that witnessed a 9.43% year-on-year (y-o-y) slip to 15,092. In the same context, the construction area authorized by permits (CAP) declined by a yearly 10.56%, amounting to 12.12M sqm in 2015, compared to 13.55M sqm in 2014.

Noting that permits are usually issued at least 6 months after applications are filed, the fall in construction activity is most probably caused by the lingering political and security developments, on both the local and regional fronts. As a matter of fact, the appetite for construction weakened starting 2011, as the process of selling became much harder and the access of contractors, with small market share, to construction loans became tougher given their poor standing in the market.    

As for the average area per transaction, it slightly decreased from 812.92 sqm/permit in 2014, to 802.77 sqm/permit by the end of 2015. In terms of regions, Mount Lebanon grasped 41.07% of total permits, followed by South Lebanon and Nabatiyeh with respective shares of 17.04% and 13.32%.

Looking at December alone, the number of permits stood at 1,365 in December, a 4.36% y-o-y increase from December 2014’s level. Similarly, the CAP witnessed a 9.42% yearly increase to 1.08M  sqm up from 986,113 sqm registered in the same month of last year.

Monthly Number of Construction Permits

 Construction Permits Fell by a yearly 9.43% in 2015

Source: Orders of Engineers in Beirut and North



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